For the first time in recent years, Spain is facing a situation where the issue of public finances has come under the spotlight of the Constitutional Court. The court’s decision could influence how the country’s key financial documents are adopted in the future. The Senate has officially challenged the government’s actions for failing to submit new draft budgets for 2024, 2025, and 2026, sparking widespread public debate.
According to El Confidencial, the judges unanimously agreed to consider the dispute between the Senate and Pedro Sánchez’s government. At the heart of the conflict is the Cabinet’s refusal to prepare and submit new budget drafts—something that has not occurred for such an extended period before. As a result, the country continues operating under extended accounts, raising questions about adherence to constitutional norms and transparency in the management of public funds.
The Senate, where the opposition party holds a majority, initiated legal proceedings after the government ignored a formal request to present the budget. According to upper house representatives, the refusal to approve new financial plans annually violates the Constitution, which obliges the executive branch to draft and submit budget projects each year.
Causes of the conflict
In December of last year, the Senate once again appealed to the Constitutional Court, citing not only the absence of the draft budget itself, but also its failure to be submitted to Congress. This was made possible by the opposition, which used its numerical advantage to bring the issue to the national level. According to El Confidencial, such a situation has arisen for the first time, and now the court must determine whether the government’s actions truly violate the country’s constitution.
The upper chamber claims that the Cabinet violated Articles 134.1 and 134.3 of the Constitution, which clearly stipulate the duty to draft and submit a budget bill annually. In the Senate’s view, extending old accounts without approving new documents cannot become a permanent practice and undermines fiscal discipline.
In October last year, the Senate officially submitted a demand to the government to register the draft budget, a necessary step to initiate legal proceedings. After this request was ignored, the opposition succeeded in bringing the case before the Constitutional Court, which must now assess the actions of the executive branch.
Possible consequences
If the court finds that the government has violated its constitutional obligations, this could lead to a rethink of Spain’s budget formation process. The court’s decision may set a precedent that limits the possibility of extending old accounts without approving new financial plans. It could also strengthen parliamentary oversight of Cabinet actions and increase transparency in the budgetary process.
If the court sides with the Senate, the government will be forced to change its practice and return to presenting an annual budget. Such an outcome could impact political stability and spark new debates about the allocation of public funds. At the same time, if the court considers the Cabinet’s actions permissible, it will reinforce the executive’s position and allow the ongoing use of the budget extension mechanism in exceptional cases.
According to El Confidencial, the dispute between the Senate and the government has become one of the most prominent political conflicts in recent years. The budget issue has always been sensitive for Spanish society, since it determines funding for healthcare, education, and other key areas of national life.
Context and related cases
In recent years, Spain has already faced challenges in approving its budget, but such a prolonged absence of new accounts has not been seen before. In 2018 and 2019, the government also resorted to extending previous financial plans, which drew criticism from the opposition and experts. At that time, disputes did not reach the Constitutional Court, but the situation from 2024 to 2026 is unprecedented in both duration and scale.
In other European countries, similar conflicts are usually resolved at the parliamentary level, yet in Spain, this issue is being brought before the highest judicial authority for the first time. This highlights the importance of adhering to constitutional procedures and the need to find a balance between stability and the renewal of financial instruments. The court’s final decision could serve as a benchmark for future governments and change the rules of the game in the country’s budget policy.
